Following automatic enrolment (AE) in 2012, over 11 million previously underserved individuals began saving for retirement. This remarkable achievement highlights the pension industry's ability to foster positive social impacts and should inspire continued progress.
The role of pension providers in shaping financial futures has never been more critical. Advisors and employers recognise this, with 90% of intermediaries valuing responsible business practices when recommending a workplace pension[1].
Founded for social good, The People's Pension stands out as a responsible business motivated by a commitment to reinvest profits to benefit its members rather than shareholders. Achieving remarkable success over the past 12 years - supporting more than 100,000 employers, managing over £28 billion, and emerging as one of the UK's fastest-growing asset owners - the organisation is built on a purpose: building financial foundations for life.
Responsibility runs through all our activities. The Trustee of The People's Pension recognises climate change as an urgent societal challenge and one of the most financially material environmental, social and governance risks facing pension savers. That's why 70 per cent of The People's Pension's main investment fund is invested in climate-aware strategies.
We aim to make our products simple and accessible so all our members can understand them. As such, we prioritise transparency; publishing charges, investment returns, and service levels all in one place on our website. Furthermore, to maximise returns, we've implemented a fairer and more responsible fee structure that reduces charges as members' funds grow.
Recognising the complexity of financial planning, we've launched an app to help members track their pensions more easily and a financial wellbeing hub to assist them in making informed financial decisions. Unlike most financial services, we place no time limits on customer service calls, allowing our colleagues time to resolve issues fully.
As an organisation, we take our responsibilities as an employer seriously. We foster an inclusive environment that promotes growth and development while empowering colleagues to contribute to their communities through initiatives such as dedicated volunteer days and fundraising for local causes.
We've always believed sustainable employment is integral to building financial foundations. Our long-standing charitable trust, which supports construction workers facing hardship, reflects this. We've also partnered with the Good Things Foundation to address digital inequality, recognising that essential skills are crucial for both employment and pension saving.
The pension industry must continue innovating to support individuals facing saving barriers. For example, we've highlighted that parents of disabled children risk a £138,000 pension shortfall due to caregiving responsibilities preventing them from working. Meanwhile, savers need guidance; our Pension Transfer Outcomes Index underscores the risks of higher-cost pension transfers, potentially saving UK savers £1.2 billion yearly. By advocating for transparent and comparable information disclosure, we empower consumers to safeguard their savings.
As the industry moves forward, the focus on building resilient financial foundations must persist. By embracing responsibility and transparency, pension providers, employers, and advisers can deliver long-term value to savers and contribute to a fairer society.
To find out more about The People's Pension visit thepeoplespension.co.uk.
